Our analysis is based on comparing Edison International with the following peers – Hawaiian Electric Industries, Inc., PNM Resources, Inc., PG&E Corporation, Portland General Electric Company, Pinnacle West Capital Corporation, American Electric Power Company, Inc., FirstEnergy Corp., Xcel Energy Inc., Avista Corporation and Sempra Energy (HE-US, PNM-US, PCG-US, POR-US, PNW-US, AEP-US, FE-US, XEL-US, AVA-US and SRE-US).
Edison International’s dividend yield is 2.60 percent and its dividend payout is 71.21 percent. This compares to a peer average dividend yield of 2.93 percent and a payout level of 63.95 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. In addition, the low dividend quality score of 25 out of a possible score of 100, points to unsustainability as well.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2016), EIX-US paid a low quality dividend, which represents a yield of 2.52% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality, 1 was medium quality and 3 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2016), EIX-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 6.90x), investing cash flow (coverage of -5.80x), issuance cash flow (coverage of -0.18x) and twelve-month prior cash (coverage of 0.36x), for a total dividend coverage of 1.24x.
EIX-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.14x).
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||3.09||2.88||2.92||2.17||2.82||2.6|
|Dividend Payout (%)||-1168.18||-234.38||49.19||30.28||55.89||71.21|
A complete list of metrics and analysis is available on the company page.
Edison International is a renewable energy company. The company through its subsidiaries, generates and distributes electric power, and invests in energy services and technologies, including renewable energy. Edison International was founded on April 20, 1987 and is headquartered in Rosemead, CA..
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